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Canada Rail Is in Talks to Buy
Illinois Central for $2.3 Billion

Deal Would Create North American Giant,
Linking Canadian Ports With U.S. Heartland

By

Steven Lipin and

Daniel Machalaba Staff Reporters of The Wall Street Journal

Updated Feb. 5, 1998 3:39 a.m. ET

Canadian National Railway Co., Canada's biggest freight railroad, is near an agreement to acquire Illinois Central Corp. for more than $2.3 billion, say industry executives familiar with the talks.

The combination would create a $4 billion-a-year giant spreading from the two coasts of Canada through the midwestern U.S. to the Gulf of Mexico. If completed, the deal could help facilitate Canada-Mexico trade under the North American Free...